Topic formulate the efas table for viettel

STATE BANK OF VIETNAM MINISTRY OF EDUCATION AND TRAINING BANKING UNIVERSITY OF HO CHI MINH CITY FACULTY OF BUSINESS ADMINISTRATION TEAM PRESENTATION REPORT MODULE: STRATEGIC MANAGEMENT TOPIC: FORMULATE THE EFAS TABLE FOR VIETTEL Instructors: Pham Huong Dien Class: MAG313_221_8_L13_TA Members group 5:  Đỗ Phạm Minh Thư 050608200687  Võ Gia Hân 050608200343  Nguyễn Thoại Trúc Ngân 050608200470  Trương Bảo Nhi 050608200530  Ngô Võ Thị Mai Quyên 050608200589  Trần Phương Uyên 050608200757 Table of Contents Phần I: Viettel Profile 1.1 Name 1.2 Vision 1.3 Mission .1 1.4 Product .2 1.5 Size of market 1.6 Current strategy Phần II: External environment analysis .3 2.1 Opportunities .3 2.1.1 Government policy to stimulate business development 2.1.2 Consumer demand for telecommunications services is increasing .4 2.1.3 Barriers to entry into the industry 2.1.4 Suppliers pressure 2.1.5 Fluctuations in the economy 2.2 Threats .6 2.2.1 Changes of the legal system 2.2.2 Pressure from customers to use communication services .7 2.2.3 Technology policy on telecommunications and informatics is prioritized for development 2.2.4 Competitive pressure from substitute products .8 2.2.5 Competition in the industry 2.3 External Factor Analysis Summary (EFAS Table) Phần III: Conclusion 11 REFERENCE Phần I: Viettel Profile I.1 Name The word "Viet" is taken from Vietnam The remaining word "tel" is taken from "telecom" Therefore, "viettel" means telecommunications service for Vietnamese people I.2 Vision I.3 Mission "Viettel has completed the mission of "Popularizing telecommunications services" for all Vietnamese people and now, we desire to pioneer in "Creating a digital society" in Vietnam Pioneering in building digital platforms to enable individuals and organizations to create their own values and resonate different values for synergy I.4 Product VOICE & SMS Viettel owns a world-class porfolio of International Voice & SMS partnership solutions and ability to reach every destinations worldwide ROAMING + Viettel helps to drag all boundaries closer to your customers wherever they are by strong connectivity and stable quality of our world hubbing system GLOBAL CONNECTIVITY Viettel offers the effective and intergrated solution for international data transmittion with latest and most secured technology INTERNATIONAL DIGITAL SERVICES Viettel gives yourself the best chance of reaching target customers, enhancing customer experiences and staying relevant I.5 Size of market It can be seen that Viettel is the leading telecommunication company in Vietnam, the top most valuable brand in Southeast Asia and the top 227 valuable brands in the world Therefore, the market size of Viettel is also extremely large with about 270 million people in 10 countries in Asia, America and Africa I.6 Current strategy With the desire to pioneer in creating a digital society in Vietnam, Viettel always tries to come up with practical and effective strategies The current strategy Viettel is focusing on is: ● Research and development ● Technology ● Human resources management ● Marketing Phần II: External environment analysis II.1 Opportunities In order to gain more market share and penetrate deeply into the international market, the government is implementing a policy to promote businesses with economic potential like Viettel to expand investment cooperation abroad Especially right after Vietnam joined the WTO To create opportunities for Viettel Group to develop more strongly, the government restricts the establishment of new mobile telecommunications companies in the market, strictly implementing the terms of business registration Both demand and requirements for telecommunications services are evolving Phones are becoming more compact, shifting the telecommunications business into a predominantly wireless business Basic smartphone needs, like voicemail, caller ID, and messaging are all covered People want to access the internet anywhere, anytime They can surf Facebook, and Tiktok in their free time, access Maps while on the road, almost everyone uses a data plan to not depend much on wifi So data is added to cellular plans In addition, Wifi has also been integrated into buses and cars to meet the needs and increase the customer experience Customers of the telecommunications industry have been more diverse in terms of age and usage needs This increase in 'Demand' gives Viettel the opportunity to develop new products, expand market share, and expand its customer base Viettel is a Military Telecommunications Company with the protection of the Government, a defense economic enterprise with 100% state capital with a charter capital of 121,520 billion VND Currently, in Vietnam, the market share in the telecommunications industry is mainly Viettel, Mobifone and Vinaphone with a total of 94% and the remaining 6% belongs to other network providers such as Vietnammobile, Gtel The leading is Viettel with 43% total market share of Vietnam's telecommunications industry This shows that in the Vietnamese market, it is very difficult for a new telecommunications business to jump in Forcing new entrants to be extremely large-scale Document continues below Discover more fbruosmin: ess blaw23 Trường Đại học Ngâ… 175 documents Go to course De viet Vstep full co dap an 11 100% (8) DE THI TAI Chinh QUOC TE 100% (2) Chap005 - ALICIA WONG CASE STUDY 18 business 100% (1) Correctional Administration Criminology 96% (114) English - huhu 10 Led hiển thị 100% (3) 20 ĐỀ THI THỬ TỐT NGHIỆP THPT NĂM… 160 an ninh 100% (2) mạng and risky Investment capital is also a worry point for a new entrant into the industry The needs of customers are increasing, requiring telecommunications businesses to constantly research and develop new technologies and services to meet that increased demand => With the barriers of capital and large scale, we can compare with the scale of Viettel, we can see that these barriers will create more advantages for Viettel Equipment To operate in the field of information and telecommunications services, requires a lot of investment in equipment Finding the best and most reasonable supplier for your business is one of the factors that determine the success of your business However, in Vietnam today, there are many companies providing telecommunications equipment and software both domestically and internationally In terms of printing system supply, there are suppliers such as ALCATEL, Huawei, ZTE Regarding the switchboard, there are Huawei, Ericsson, and Alcatel In terms of server supply, there are companies such as Sun, Dell, HP, IDM… Regarding software, there are FPT, Telsoft, Ultiba, Reedness, Elcom From that, it can be seen that the number of suppliers of telecommunications equipment and software is very rich As a result, mobile communication service businesses will have more opportunities to choose the best provider for themselves, and the pressure from providers will be reduced Finance Because of receiving great attention and investment from the military, they business in many different fields Therefore, it can be seen that the pressure of financiers in Viettel's competitive pressure model is also very low In particular, the recent Covid-19 pandemic has affected global trade but has been a driving force to accelerate the e-commerce sector This is the golden time to apply Viettel AI technology to solve the problem of transaction and distribution of goods through online channels The Viettel Data Mining Platform helps businesses to mine the huge data of their customers Viettel focuses on the group's goals of increasing customer experience through digital interaction channels, bringing Callbot and Chatbot virtual assistant systems into sales and customer care activities In addition, Viettel has developed new services on the digital platform, creating a new revenue growth source such as Multisim service (allowing sim to be used on many devices), IoT (technology to connect all things) ), eSport tournament (online sports), expanding Viettel pay electronic payment ecosystem with 15 essential industries and fields of life such as payment for electricity, water, telecommunications, online learning For Viettel, this is both a favorable condition for the development of technology, helping the company to choose the right technology To improve product quality and service quality to customers II.2 Threats The government is implementing amendments to the charter in the legal system, too many sub-law documents, which reduces the competitiveness of businesses The telecommunications sector appeared with new types of services and new business models The current competition regulations have shown several shortcomings It is not enough to prescribe pre-regulatory obligations to regulate specific competitive acts in the telecommunications sector to avoid market disruption, maintain and develop the current healthy competitive telecommunications market Therefore, it is necessary to consider relevant market regulations for many important telecommunications services markets At the same time, it is necessary to supplement post-audit management because the current telecommunications development trend may appear in many new business types In addition, the legal regulations on business in foreign markets, the preferences and customs of the local people are also a great challenge for Viettel Viettel with 65 million mobile subscribers has become the largest network operator in Vietnam With such a large number of customers, Viettel must provide more services and high quality Through market research, consumers of Viettel are all individuals, households and groups of people who are and are potential buyers of the company's services out of a total of 98 million people and countries inside and outside the region However, customers are very sensitive and fastidious people So in addition to providing a good quality phone network, customer care is also very important Because just having a bad judgment of a customer about a business can make them decide to change suppliers Therefore, in order to attract and retain customers, besides strengthening the network, the company must also pay close attention to customer reactions Any country in the world, wanting to develop quickly and firmly, must pay attention to the technology factor With Viettel, the point of view on technology is also closely linked with the "latest" requirement That is both the motto and the immutable requirement, the top priority in the development strategy In fact, in the process of growing up, Viettel always takes shortcuts, applies the world's latest and most advanced telecommunications technology, and promotes the movement of technical innovations, constantly expanding and improving production and business efficiency Mastering technology and doing it yourself is a tradition of Viettel Currently, with a variety of new technologies, Viettel not only updates those technologies but also has to consider the effectiveness in practical application Towards a corporation operating in many fields, it can be seen that Viettel currently has a lot of replacement products for a telecommunications market that is gradually saturated or a fiber optic Internet market that does not have many new things It can be seen that Viettel is currently investing in improving infrastructure to pioneer in high-tech fields such as owning a 5G network, participating in logistics with Viettel Post or providing financial and payment services payment with ViettelPay According to information from Viettel, the research and deployment of 5G networks is one of the development orientations set by this corporation in the strategy "Pioneer to create digital society" Viettel is now considered the "big brother" of the telecommunications industry, so the factors about Viettel's potential rivals in the model of competitive pressures are considered insignificant However, telecommunications is just one of the industries that Viettel is pursuing Regarding the market, Viettel also has many new markets with great potential such as Laos, Cambodia or Africa This is where Viettel should watch out for potential opponents II.3 External Factor Analysis Summary (EFAS Table) Identify external factors that are likely to be opportunities or threats for the business: Political and legal factors; economic factors; social factors; technical factors Combined with the analysis and judgment of the network's competitive forces: current competitors, potential competitors, suppliers, customers and substitute products Through the analysis of factors from the above mentioned external environment, the EFAS matrix is used to synthesize and evaluate the influence of the above factors External Factors Weight Rating Weighted Comment Opportunities Score Government policy to stimulate business development 0.1 0.3 Support for business Consumer demand for Develop new products, telecommunications services is expand market share and increasing 0.1 0.5 expand its customer base Having a good position The Barriers to entry into the barrier to enter the industry industry makes other companies jump 0.07 0.28 in Diversity in supplier selection 0.15 0.75 Lots of support for businesses An opportunity to strategize Fluctuations in the economy change in the digital age and 0.08 0.24 the new normal Threats Changes of the legal system Causing some difficulties for 0.1 0.2 businesses Customers are easy to turn Pressure from customers to use away if service quality has communication services 0.12 0.48 problems Technology policy on telecommunications and Costly, time consuming and informatics is prioritized for need to be considered for development 0.08 0.32 efficiency Competitive pressure from 0.3 Claims of diversity and substitute products 0.1 usefulness Competition in the industry High level of competition 0.1 0.4 among companies Total 3.77 With a total matrix of 3.77, this is higher than the industry average (2.5 points) This result shows that Viettel's response to external environmental factors is great Viettel needs to continue to promote its strengths and improve its weaknesses for the business to develop sustainably and prosper It can be seen that the diversity in supplier selection has the highest weight The customer factor ranks second and the factor for potential of new entrants into the industry has the lowest weight Firstly, the supplier is an important factor to help the business operate It provides equipment, materials, capital and even human resources for stable operation of the business Secondly, customers help businesses generate revenue, profit, and continue to exist And Viettel always takes customers as the center Viettel offers strategies to retain customers as well as find new customers to expand its market share and maintain its position in the competitive market And finally, the "new entrants into the industry" factor is the most underrated because the market share of this industry in Vietnam is 94% and this also means that it is difficult for other businesses to jump in and compete Investment capital is also a worry point for a new entrant into the industry In terms of ratings, suppliers and the "consumer demand for telecommunications services is increasing" factor have a great impact on Viettel's strategy Viettel has well used resources from suppliers to invest and develop businesses in infrastructure systems In addition, grasping the needs of domestic and foreign customers to launch appropriate products and expand market share Changes in the legal system only have a small impact on businesses because Viettel always updates and promptly adapts to changes Viettel shows compliance in each set of documents and policies, but it will take time to change such a large apparatus immediately Phần III: Conclusion Through the external factor analysis summary table and 10 factors selected, the model allows you to analyze the external environment of the business based on different levels These include industry, macro and micro environmental factors The result of the application of the EFAS matrix is one of the ways to help managers understand the factors of the external environment It makes an important contribution to the business's phased work planning efforts The analysis results show that Viettel is a brand that responds very well to the external environment It can be seen that Viettel has the right strategies to turn challenges into opportunities and turn opportunities into strengths of enterprises Viettel has taken advantage of opportunities in terms of suppliers, demographics, barriers to entering the industry, and made good use of its capabilities when supported by the government Even in the midst of economic fluctuations, although the mobile telecommunications industry is a bright spot, Viettel has always made constant efforts to improve and develop When facing obstacles, Viettel always sets out policies to minimize damage and respond well to them It can be said that Viettel views threats as a strategy for development In fact, when under pressure with alternative products, Viettel has launched new products or always improved to bring the most useful products to customers Although there are still some factors that need to be improved, it is undeniable that the achievements that the business has achieved in its journey With the current achievement of being the top telecommunications company in Vietnam and Southeast Asia, the top 227 most valuable brands in the world, such good results cannot be denied This is a highly competitive business and always strives for constant development REFERENCE [1] P T Tú, Quản Trị Chiến Lược Doanh Nghiệp, Công Thương, 2019 [2] T L Wheelen H J.David, Strategic Management and Business: Policy Globalization, Innovation And Sustainability, Pearson, 2017 [3] T Trang, “Mơ hình áp lực cạnh tranh Viettel: Người thành công ln có lối riêng,” Marketing AI, https://marketingai.vn/mo-hinh-5-ap-luc-canh-tranh-cua-viettel/? [4] N Minh, “Thị trường viễn thơng bão hịa - Doanh nghiệp ‘vượt sóng’ nào?,” Vietnam.net, 25 11 2022 https://vietnamnet.vn/thi-truong-vien-thong-bao-hoa-doanh- nghiep-dang-vuot-song-the-nao-2084434.html? [5] T Linh, “Cuộc đua sôi động thị trường viễn thông,” Nhân Dân, 25 2019 https://nhandan.vn/cuoc-dua-soi-dong-tren-thi-truong-vien-thong-post348045.html? [6] S Tuân, “Bài 3: Khai sáng, chiếm lĩnh công nghệ nhất,” Quân đội nhân dân, 11 2020 https://www.qdnd.vn/quoc-phong-an-ninh/xay-dung-quan-doi/bai-3-khai-sang-chiem-linh- cong-nghe-moi-nhat-622752 [7] V Vũ, “Viettel vươn giới nào?,” VTC News, 2019 https://vtc.vn/viettel- vuon-minh-ra-the-gioi-the-nao-ar477947.html [8] F David, Strategic Management: Concepts and Cases, PHI LEARNING, 2008 [9] A H A R M C M Z , “The Impact of Digitalization on Occupational Fraud Opportunity in Telecommunication Industry: A Strategic Review Authors,” pp 1308 - 1326, 2020 [10] A F Usmani, “Understanding Customer Expectations in the Telecommunications Sector,” 2022 https://www.linkedin.com/pulse/understanding-customer-expectations-sector- aalia-firdos-usmani? 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